Things Every Business Owner Needs to Know About Commercial InsuranceThings Every Business Owner Needs to Know About Commercial Insurance

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Things Every Business Owner Needs to Know About Commercial Insurance

As a business owner, you have to know a lot of diverse information, and that includes understanding how commercial insurance works. Whether you are booking a policy for your fleet of vehicles or simply to cover your business in general, I want to help. Hi, my name is Katie, and I worked in business management and human resources for years. Recently, I stepped back to stay home with my kids, but as a creative and intellectual outlet, I decided to start this blog. I hope that you enjoy it, and if my posts are useful to you, please share them with your friends. I want to help as many people as possible.

Current Issues Affecting Workers' Compensation Insurance

By law, workers' compensation insurance is compulsory for all employers in Australia regardless of whether employees are permanent or under contract. Therefore, business insurers must design insurance facilities that attract potential clients. However, insurers and scheme owners must remember that certain aspects of workers' compensation insurance are dynamic. For instance, the price of premiums and the development of new insurance products change according to prevailing industry drivers. This article highlights current issues affecting workers' compensation insurance.

The Impact of Technology 

Technological advancements have continued to change business operations, and insurers need to take notice. Companies are no longer putting their employees in the front line of danger if technology can be used to accomplish the same task. For example, construction companies are increasingly relying on drone technology to inspect buildings under construction. The strategy eliminates the need to send workers at height to conduct the same inspection, consequently eliminating the risk of falling. In this regard, technology has reduced monthly premiums and allowed insurers to cover more workers under the same scheme.

Shifting Demographics 

A study conducted between 2016 and 2017 revealed that at least 20% of Australians intend to work until the age of 70. It means that employees of mature age are not likely to leave the workforce anytime soon. Another study established that employees of mature age are 2.4 times more likely to remain with the same employer. The statistics are good news for employers because of the experience and work ethic of this demographic. The development also works in favour of insurers in as far as workers' compensation insurance schemes go. Notably, old age brings physical transformations that affect basic workplace activities such as bending, lifting, pushing and carrying. Therefore, the cost of workers' compensation insurance is bound to be high for this demographic. The change in workplace demographics means that employers have to pay more in premiums, and that is good business for insurers.

Changing Nature of Employment 

While full-time employment is still the norm in Australia, there is no denying the fact that businesses are increasingly hiring employees on a part-time basis. The reason for this trend is the increased productivity of part-time employees, which is attributed to reduced stress levels due to improved work-life balance. Besides, part-time employees are less prone to workplace injuries because they don't spend as much time in the workplace. Therefore, the changing nature of employment is encouraging insurers to develop new workers' compensation insurance products to cater to part-time workers.